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Mortgage Servicing Rights | 6 Months Ended
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Jun. 30, 2014
Mortgage Servicing Rights | Note 9. Mortgage Servicing Rights We invest in mortgage servicing rights and contract with a licensed sub-servicer to perform all servicing functions for loans associated with our MSRs. The following table presents activity for MSRs for the three and six months ended June 30, 2014 and 2013. MSR Activity
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(In Thousands) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Balance at beginning of period |  | $ | 64,971 |  |  | $ | 18,123 |  |  | $ | 64,824 |  |  | $ | 5,315 |
Additions |  |  | 11,807 |  |  |  | 16,148 |  |  |  | 14,666 |  |  |  | 28,614 |
Changes in fair value due to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Changes in assumptions (1) |  |  | (3,553) |  |  |  | 9,506 |  |  |  | (4,678) |  |  |  | 10,312 |
Other changes (2) |  |  | (2,000) |  |  |  | (679) |  |  |  | (3,587) |  |  |  | (1,143) |
Balance at End of Period |  | $ | 71,225 |  |  | $ | 43,098 |  |  | $ | 71,225 |  |  | $ | 43,098 |
(1) | Primarily reflects changes in prepayment assumptions due to changes in interest rates and discount rates.
(2) | Represents changes due to realization of expected cash flows.
We make investments in MSRs through the retention of servicing rights associated with the residential mortgage loans that we have acquired and subsequently transfer to third parties or through the direct acquisition of MSRs sold by third parties. The following table details the retention and purchase of MSRs during the three and six months ended June 30, 2014. MSR Additions
(In Thousands) |  | Three Months Ended June 30, 2014 |  |  | Six Months Ended June 30, 2014 |
|  | MSR Value |  |  | Associated Principal |  |  | MSR Value |  |  | Associated Principal |
Jumbo MSR additions: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
From securitization |  | $ | 2,186 |  |  | $ | 257,201 |  |  | $ | 2,186 |  |  | $ | 257,201 |
From loan Sales |  |  | - |  |  |  | - |  |  |  | 488 |  |  |  | 58,793 |
Total jumbo MSR additions |  |  | 2,186 |  |  |  | 257,201 |  |  |  | 2,674 |  |  |  | 315,994 |
Conforming MSR additions: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
From loan sales |  | $ | 7,495 |  |  | $ | 725,339 |  |  | $ | 9,302 |  |  | $ | 880,437 |
From purchases |  |  | 2,126 |  |  |  | 213,953 |  |  |  | 2,690 |  |  |  | 273,342 |
Total conforming MSR additions |  |  | 9,621 |  |  |  | 939,292 |  |  |  | 11,992 |  |  |  | 1,153,779 |
Total MSR additions |  | $ | 11,807 |  |  | $ | 1,196,493 |  |  | $ | 14,666 |  |  | $ | 1,469,773 |
MSR Income The following table presents the components of our MSR income.
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(In Thousands) |  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Servicing income, net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income |  | $ | 4,026 |  |  | $ | 1,943 |  |  | $ | 7,624 |  |  | $ | 2,793 |
Late charges |  |  | 38 |  |  |  | 11 |  |  |  | 73 |  |  |  | 18 |
Cost of sub-servicer |  |  | (288) |  |  |  | (234) |  |  |  | (603) |  |  |  | (412) |
Net servicing income |  |  | 3,776 |  |  |  | 1,720 |  |  |  | 7,094 |  |  |  | 2,399 |
Market valuation adjustments |  |  | (5,553) |  |  |  | 8,827 |  |  |  | (8,265) |  |  |  | 9,169 |
Income from MSRs, Net |  | $ | (1,777) |  |  | $ | 10,547 |  |  | $ | (1,171) |  |  | $ | 11,568 |

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- Definition Mortgage Servicing Rights Disclosure + References No definition available. + Details
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